US embassy cable - 05ABUDHABI4579

UNCLAS ABU DHABI 004579 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR NEA/ARP AND EB/IFD/ODF DMARCELLUS 
 
E.O. 12958: N/A 
TAGS: EAID, ECON, EFIN, IZ, AE 
SUBJECT: STATUS OF ABU DHABI GENERATOR DONATION TO IRAQ 
 
REF: ABU DHABI 1706 (2004) 
 
1. (SBU) Summary.  As part of the its promised assistance to 
Iraq, the UAE intends to donate 2 ABB 200 megawatt/day power 
stations to Iraq.  Although the UAE pledged to send the 
generators over a year ago, they have not yet been sent.  The 
UAE Minister of State for Foreign Affairs indicated last year 
that the UAE was looking for other countries to cover the 
cost of transporting and installing the generators.  However, 
according to an official at the Abu Dhabi Water and 
Electricity Authority (ADWEA), the Abu Dhabi Government has 
decided it will cover these costs.  ADWEA is hopeful the 
generators will be up and running in Iraq before next summer. 
 End Summary. 
 
2. (SBU) In May of 2004, UAE Minister of State for Foreign 
Affairs Sheikh Hamdan bin Zayed told Ambassador that Abu 
Dhabi had two used power generators in storage that were to 
be donated to Iraq (reftel).  However, he indicated the UAE 
would not be able to cover the cost of shipping and 
installing them and that the UAE was hoping another donor 
country could cover these costs.  Since that time, the 
generators have not been transferred to Iraq.  In response to 
Embassy questions, MFA officials referred econoff to the Abu 
Dhabi Water and Electricity Authority (ADWEA), noting that 
the generators are in ADWEA's possession.  On November 8th, 
econoff met with Ahmed Saif al-Darmaki, ADWEA Director of 
Planning and Development to discuss the status of the 
generators. 
 
3. (SBU) Al-Darmaki said the two generators are 10-year old 
200 megawatt/day ABB power stations (ie: the generators and 
all associated equipment) that were previously used in Abu 
Dhabi.  According to al-Darmaki, the generators can be 
powered by natural gas, crude, or diesel fuel.  Last year, 
al-Darmaki suggested to Abu Dhabi Crown Prince Sheikh 
Mohammed bin Zayed (MbZ) that Abu Dhabi donate the generators 
to Iraq.  Al-Darmaki told econoff that ABB Corporation had 
quoted a very high price to ADWEA for transporting and 
installing the generators, and MbZ asked ADWEA to solicit 
bids from other companies.  As of this month, ADWEA has 
received three bids for this contract.  Al-Darmaki said he 
will be forwarding the proposals to MbZ's office this week, 
and he is hopeful MbZ will select a company by December. 
According to al-Darmaki, once a company is awarded the 
contract, it will take less than six months to transport and 
install the generators, and he said he is confident the 
generators will be operating in Iraq before the summer of 
2006. 
 
4. (U) Baghdad Minimize considered. 
SISON